We have some new industry reads for you this week!
Blockchain, GDPR, fintech, cloud-based technology - there are so many new words we need to continue adding to our vocabulary to keep up with the changes of the business world as it advances into 2018 and beyond. While not all technological changes directly affect to the hotel industry, there are many innovations that we simply cannot avoid. Did you ever consider that the blockchain technology hype would apply to your hotel's distribution and loyalty? In our first read, you can read about how blockchain could potentially provide an alternative to online travel agencies, which would greatly affect a hotel's distribution strategy. While the consequences are yet to be confirmed, OTAs will definitely be on their toes as more and more airlines and hotel brands begin to adopt this new approach. Moreover, with blockchain, hotels can also access more complete profiles of their guests and create stronger loyalty programs. In the second read, we see how another hotel chain is attempting to provide it's customers with higher customer recognition levels through technology. Marriott International and Salesforce, the customer relationship management software, have entered into a partnership that will allow Marriott to enact complete, cross-channel recognition of their guests, to allow for a smoother, more knowledgeable communication approach with its customers. Finally, while modern technology is a crucial part of the hospitality industry, we cannot forget about the basic concepts of hotel operations like revenue management. In our third read, the importance of revenue management to general managers is broken down into six reasons. Interestingly enough, revenue management only surfaced in the industry in the 70's, and has since become an integral part of how hotels can optimize revenue and help GMs manage their properties. It only makes you wonder how blockchain technology and data-based customer relationship strategies will look like in the next 50 years too!
Hype surrounding blockchain technology continues to climb, despite the volatility in related cryptocurrencies like Bitcoin seen earlier this year. While it's still too early to know how these distributed-ledger technologies might change the hospitality industry, experts are starting to share details of what could be effective use cases in distribution and hotel loyalty.
“Marriott’s vision is to be the world’s favorite travel company. The best way to reach that goal is to employ a best-in-breed, global customer recognition platform that connects our guests at every possible touchpoint to our team of expert hospitality professionals who strive to delight our guests every stay,” says Brian King, Global Digital & Sales Officer at Marriott International.
Tasked with overseeing all hotel operations, general managers (GMs) are well positioned to help their organizations drive profitability by achieving a strong culture of revenue management. Particularly in the age of total revenue management — optimizing revenue from all of a hotel’s available revenue streams, including rooms, food and beverage, spa, etc. — GMs have the unique ability to align team goals so that the entire organization works together to maximize demand and optimize revenue.